Bank Financing for SMEs: Evidence Across Countries and Bank Ownership Types

By Thorsten Beck, Asli Demirgüç-Kunt, María Soledad Martínez Pería. 2009

333 citations recorded by the source corpus.

Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with lending technologies and organizational structures, suggesting that SME financing need not be based only on “relationship lending”. Consistent with these results, we find few significant differences in the extent, type, and pricing of SME loans across bank types. Instead, we find significant differences across developed and developing countries, driven by differences in the institutional and legal environment.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/a28435078600497a883a77c6b2cb92fe79e9cfd8

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Citations in the corpus

The Status of Bank Lending to Smes in the Middle East and North Africa Region: The Results of a Joint Survey of the Union of Arab Bank and the World Bank (2011, unknown): “We also want to examine whether large banks play an important role in SME finance (Berger and Udell, 2006; de la Torre et al., 2008 and Beck et al., 2009), and whether banks are engaged in relationship lending (Berger et al., 1995, 2001; Berger and Udell, 1996; Sengupta, 2007).”
SME finance in Africa (2014, background): “While the share of foreign-owned banks has further increased over the past twenty years, the composition of the foreign bank population has changed significantly, with a higher share of banks from other emerging markets, including from within Africa (Beck et al., 2011).”